Continuous active sonar systems are used to continuously “listen” for target echoes during signal transmission. This capability allows for an increased number of detection opportunities and better target tracking and holding compared to a pulsed active sonar system, which listens after the transmission and must wait between successive transmissions. A linear frequency modulated (LFM) signal is one type of signal that may be used in continuous active sonar systems. While an LFM signal provides good target range information, it typically does not provide target range-rate information and is known to have a range-bias error that may restrict accurate target localization and tracking. A system and method are needed that use continuously repeating LFM signals, quickly estimate the target range-rate, and can ascertain and correct for the range bias error inherent to LFM signals.